At the end of last week Tesla announced that it would build its first factory outside the US in Shanghai. And given Tesla's cash flow situation, Tesla must finance this factory's development with external funding. However, the window for making such a funding request from bond- or shareholders may be very narrow.
The tech bubble is in its last throes
How much longer can scooter rental companies raise $150 million on the back of speculative $1 billion market valuations? That's the question I asked last month. And to get to the answer, the headline I chose to use was all about Tesla because, more than any other company, Tesla represents the field of dreams ethos of this tech boom.
Now, Tesla understands that time is short. That's why it announced a restructuring in June. The market loved it...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.